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1、.GCLOBEALSUPPLYCHAIN&伊LOGISTICS.ZulfKhan日Lecture7;Inventoryinthe8CandintrotoMRP余andERPNBEEDFORINVENTORY.LECTURE7冬Tomeetanticipateddemand义Toprotectagainststockouts(variation,unanticipateddemand)外Togmoothproductionrequirements#Totakeadvantageofordercycles.全Bfficiencyinfixedcostsoforderingorproducing(e
2、.g.sharedeliverytruckoreconomyofscaleinbatchproduction)*Tode-coupleoperations,nrovidingsmoothflowbetween0perationsWIPinyentorybetweensuccessivemanufacturingstepsorsupplychain(bufferstoclk)permitsoperationstocontinueduringperiodsofbreakdowns/strikesTohedgeagainstpriceincreases,ortotakeadyvantageofqua
3、ntitydiscounts.WhereintheSCwouldyoufindinventory?TRADEOFFSINTHESIZEOFINVENTORIES#InventoriesthataretoohighareexpensivetocarTy,andtheytieupcapital.冬Warehousing,transportation节Greaterriskofdefects,evenwhencarefullyinventoried义Marketshiftsleavesellerwithmanyunwantedparts(obsolescence)外Inventoriesthatal
4、etooloWrcaulresultin:义reducedoperationale伯ciency(machinestarvation)节Stockouts节poorservice-noSpares节lostsales(customerrefusesraincheck,findsamorereliablesuppliem).PROBLEMSWITHBXCESSINVENTORYHOWTOREDUCEINVENTORY*TraditionalmindsetchangeReducebatchsize;largebatch=biggerinventory丸卫liminatequeuing义Safety
5、stockbetterforecastingandsystems?义卫educebreakdowns(TPMD)#Minimalinyentoryispaitofean/JIT#ABCanalysis,Simplepareto-80/20rule-Class之=10-20%ofitemscanaccountforapproximately80%ofvalueofentireinventory-Class卫井approx50%ofitemscanaccountfor15-20%ofvalue,ClassC=20-80%ofitemsaccountforthebalanceofvalueFocus
6、stzonglyontheclassAitems,thenclass卫followebyclassCSeeInventoryManagementbyEmmettandGranvile,2007ORDERQUANTITY“Variousmethodsofdeterminingbestordersize,allaredependentonvariousfactorssuchasdemandpattern,ordersize,set-up(man0andholdingcosts*TwoBinsystems一plannedorderquantity=netYequirementsaduantages一
7、inventoryiskepttoaminimum,goodfordiscontinuousdemand(classCitemsinABCanalysis)nutsandbolts.Simplestmethod2separatebinsusedQisaduantages一doesnpttakeintoaccountcapacitylimitationsandholting/set:upcost3,ifdeniandiscontinuous;thenthismethodcanTesnitin北equentset-upsDarticularly让smallsizedorders*Bconomico
8、rderquantity(BOQ)usesamathematicalequatioEOQ-/2FS“WhereR=annualdemandRememberthatany烯ctuationsinS=Ordercost(orsetupcostinmanufacturing)demandoranyothercriteriawilC=UnitcostaffecttheEOQ,hencecanmeantoo。muchortoolittieinventory1=HoldingcostasapercentageAnnualCostCostMinimisationGoal(EOQ)Modelshowstrad
9、e-offbetweencostofholdingstockandthecostoforderingstockTheTotal-CostCurveisU-Shaped命dM/丨福矗丨ngcostsinv(z入门厂AnnualcostofilemsOrderingCostsorsetupcost(8)Qo|(optmalorderquantity).OrderquantityORDERQUANTITIES义丁actorstocongiderinEOQ义Quantitypricediscountsofferedbysuppliers*Orderingcosts:-administrativewor
10、k-telephoneandpostagecosts-goodsinijardsinsnectioncosts-zeceivingcOsts*Stockholdingcosts-workingcapital-materialhandlingcosts-storagecosts-utilitycosts(gasete)-depreciationcosts-materialdamageldeterioration/obsolescenceFIXEDO0RDERQUANTITY(FOQ)sSYSTEM6FOQisacontinuousreviewsystem*Moststraightforwardm
11、ethodoninventorycontrol*Ordersizeisnormallyalwayssamebuttimeintervalbetweenreplenishmentisdfferent*Customerplacesorder,stockisallocatedanddeductedfomFreestocko圣】evifreestockleveliscomparedtopredeterminedreordereveIflessanorderislacedIffreestocke3reorderlavilthanngattionitakn*Process论Iebeatedatnextor
12、der(henicecontinuouis)*Reorderlevelcalcis;LTaveragedemand+safetystockforuncertaintyinsupplyside+safetystockforuncertaintyindem8n宣side。OrusetheEOQealculation一normallydone*Systemrequiresstabledemandandsupplyleadtime。WhicharebothdifficultiUsedforstabledemand,midtohighvolumeproductsPERIODICREVIEWSYSTEM(ORFIXEDO0RDERCYCLE8YSTEM-FOC)0OppositeoftheFOQsystem0Ordersplacedatregularintervals0Orderquantityvaries*AllowsreplenishmenttobeplannedoHencebetteruseofsta佐&transport。GoodforFMCGoGoodforseasonaldemandplanning0DoesrequiremoresafetystockthantheFOQsystem0ManyvariantsoftheFOCsystem